Resampling, Validating, Describing, and Simplifying the Model
When one assumes that a random variable Y has a certain population distribution, one can use simulation or analytic derivations to study how a statistical estimator computed from samples from this distribution behaves. For example, when Y has a log-normal distribution, the variance of the sample median for a sample of size n from that distribution can be derived analytically. Alternatively, one can simulate 500 samples of size n from the log-normal distribution, compute the sample median for each sample, and then compute the sample variance of the 500 sample medians. Either case requires knowledge of the population distribution function.
KeywordsFull Model Predictive Accuracy Bootstrap Sample Sample Median Approximate Model
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